(Photo= Yonhap news)

[Alpha Biz= Reporter Kim Sangjin] Cybersecurity startup Wiz Inc. has turned down a $23 billion acquisition offer from Alphabet Inc. (Google's parent company) and is instead moving forward with plans for an initial public offering (IPO).

According to the Wall Street Journal on the 22nd (local time), negotiations between Wiz and Alphabet, which had been ongoing for the $23 billion acquisition, have ended without an agreement. Assaf Rappaport, CEO of Wiz, informed employees via email that the company has decided to continue on its current path and is aiming for an IPO as initially planned.

Founded in 2020, Wiz provides services to detect and eliminate security risks from large-scale data stored in the cloud. The company's valuation was estimated at $12 billion when it raised $1 billion from venture capital firms including Andreessen Horowitz in May. Despite Alphabet offering nearly double the valuation from two months ago, the acquisition deal could not be finalized.

Rappaport reaffirmed the company's goal of generating $1 billion in annual recurring revenue (ARR) from its subscription business before the IPO. Currently, Wiz's ARR is around $500 million, about half of the target. Sources indicate that Wiz plans to proceed with the IPO once it reaches this goal next year.

 

 

 

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